Key Questions & Answers Regarding Florida's New Law Restricting Real Estate Ownership by Persons of Foreign Countries of Concern
Rubin On Tax
by Charles (Chuck) Rubin
11M ago
  To What Does the New Act Apply? Generally, it applies to acquisitions of defined Florida real property interests by certain described owners. There are three general categories of prohibited transfer and ownership. To apply the new provisions, one needs to focus on two separate issues regarding each of the three categories of prohibition described in the law. The first is to determine what Florida real property is subject to prohibition under the category and then what owners are prohibited under the category. For there to be a violation of a category, the type of real property that is ..read more
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Landmark Florida Supreme Court Decision on Homestead Protections Has Been Written Out of the Law by Two Appellate Courts, and No One Appears to Have Noticed
Rubin On Tax
by Charles (Chuck) Rubin
1y ago
 SUMMARY: In Havoco of America, Ltd. V. Hill, the Florida Supreme Court ruled that the Florida constitutional protections of homestead property against creditor claims trump Florida's fraudulent transfer laws. Thus, homestead protections include nonexempt assets that are added to or invested in a homestead, even if added with the intent to delay, hinder or defraud creditors. However, in a recent appellate opinion, this recognition was effectively ignored and, in practice, vitiates the holding of Havoco. And this is the second time an appellate court has done so in recent years. FACTS: Art ..read more
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IRS COLLECTION ACTIVITIES AGAINST OVERSEAS ASSETS
Rubin On Tax
by Charles (Chuck) Rubin
1y ago
The IRS Chief Counsel's Office has issued a Program Manager Technical Advice regarding questions about IRS activity to collect tax delinquencies from assets located outside of the U.S. While some of the Advice is fairly technical, it does provide some interesting information on what the IRS can and cannot do in this arena and some of the approaches they will take. Some of the collection avenues the IRS may take include: The input of a Treasury Enforcement Communications System (TECS) Lookout Indicator. This is a mechanism to help locate a taxpayer's location. Initiation of an outbound Mutual ..read more
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New Retirement Plan Distribution Rules Likely on the Way
Rubin On Tax
by Charles (Chuck) Rubin
1y ago
Several years ago, the SECURE Act was passed, which had major changes to the tax rules relating to retirement plan distributions. Another act on that subject is working through Congress - the Enhancing American Retirement Now (EARN) Act. A version has passed the House of Representatives, with the Senate working on its own version. Given the almost unanimous passage by the House, there is a very good chance that the Act will make its way into law. We cannot tell what all the provisions will be, but here is a list of items that are in one or both of the House and Senate bills and thus have a rea ..read more
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Time Period to File Estate Tax Return to Make Portability Election Extended to 5 Years
Rubin On Tax
by Charles (Chuck) Rubin
1y ago
If a spouse dies and his/her estate does not fully use the decedent's remaining unified credit, the surviving spouse can use the unused credit if certain conditions are met. One of the conditions is that an estate tax return is filed for the decedent that makes a portability election, even if no estate tax return is otherwise needed. An estate tax return is due 9 months after death, with an automatic extension granted for 6 months if timely requested. When no return is required, a return being made solely to make a portability election can be filed late, up to two years after death of the firs ..read more
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HUSBAND USES TENANCY BY ENTIRETIES PROPERTY TO MAKE A GIFT TO GIRLFRIEND - WHAT'S THE REMEDY?
Rubin On Tax
by Charles (Chuck) Rubin
2y ago
In Florida, tenancy by entireties (TBE) property of two spouses provides various benefits. These include protection of the assets against creditors of only one spouse, avoidance of probate, and protection of one spouse from unauthorized disposition of TBE property by the other. Regarding this last point, it is well settled in Florida that an estate by the entireties is vested in the husband and wife as one person, and neither spouse can sell, forfeit, or encumber any part of the estate without the consent of the other, nor can one spouse alone lease it or contract for its disposition without s ..read more
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WHAT DOMESTIC ESTATE PLANNERS SHOULD KNOW ABOUT BRUSSELS IV
Rubin On Tax
by Charles (Chuck) Rubin
2y ago
 Ask many estate planners in the U.S. about Brussels IV, and you are apt to get the response “Brussels for what?” While in effect since 2015, it is more unknown than known. In most circumstances, Brussels IV will not impact estate planning in the U.S. But if a U.S. citizen owns assets situated in the European Union (“EU”), Brussels IV can provide substantial benefits and should always be considered by the estate planner. Brussels IV is the common name used to refer to Regulation (EU) No. 650/2012 of the European Parliament and the Council of the European Union. It is an extensive provisio ..read more
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FBAR Case Reversed - Nonwillful Filing Penalties Based on Number of Accounts Not Reported
Rubin On Tax
by Charles (Chuck) Rubin
2y ago
Back in 2000, I wrote here about a case where a taxpayer did not report multiple foreign accounts on an FBAR. The question for the court was whether the $10,000 penalty for a nonwillful failure to file meant  $10,000 per return not filed, or $10,000 per account not reported on the return. For a multi-year failure to file, if there are a lot of accounts this could dramatically impact how large the penalties are. The court held the penalty is based on a per return not filed basis. The 5th Circuit Court of Appeals has reversed the trial court and allowed the penalty be imposed on a per accou ..read more
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Broad Reading of Six Year Statute of Limitations for Subpart F Omission
Rubin On Tax
by Charles (Chuck) Rubin
2y ago
Code Sec. 6501(e)(1)(C) extends the normal three-year statute of limitations on assessment to six years as to omissions of Subpart F income. In a Chief Counsel Advice, the extended six-year period was determined to apply to the entire tax liability of the corporation for that year, not just to the specific subpart F items constituting the gross income omission. Chief Counsel Advise 202142009 Follow @crubincrubin ..read more
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Of Spousal Gifts and the Substance Over Form Doctrine
Rubin On Tax
by Charles (Chuck) Rubin
2y ago
U.S. spouses each have a unified credit that allows for substantial gifting to third parties without requiring the payment of gift tax. What happens if one spouse has assets to be gifted away, but that spouse does not have sufficient remaining unified credit exemption to cover the gift and wants to use the exemption of the other spouse?   At times, the spouses can agree to split the gift for gift tax purposes, which treats 1/2 the gift as coming from each spouse. This allows the unified credit of the spouse not making the gift to be used to avoid gift tax on the 1/2 that such spouse is t ..read more
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